World Grain - January 2012 - 84

FEATURE

Shipping market
trending higher
W
hile the world has been worried about the wider economy, the shipping market has been trending higher. It’s all about the steel industry and growth in iron ore trade, delegates attending the Global Grains Conference in Geneva, Switzerland in November, were told. A ﬂood of newly built ships will prove to be a bearish factor in 2012, but the longer term outlook is positive for prices. Tom Cutler, chief analyst at Swiss Marine, described a series of blows which have hit the freight market. “There’s been a huge problem of oversupply of ships,” he said. “Yet the freight market has been rising for the last four or ﬁve months. It’s actually come back surprisingly strong in the second half of (2010).” He said that to understand what is happening in the freight market, it is necessary to follow the fortunes of the steel industry. “Iron ore trade has been growing very swiftly in the second half of (2010),” he said. “We are back to peak levels.” The changes to the steel industry have changed the ﬂows of ships around the world. “You now have a huge number of vessels that have to go back empty, typically from China to Brazil,” he said. “Iron ore is no longer ﬂowing from Canada or Brazil into Europe. It’s all going to China.” Unusual things have happened to rates, with the relation84

by Chris Lyddon

Iron ore trade is one of the factors pushing prices upward
ship between iron ore prices and freight breaking down. “This year (2010) so far, nine months out of ten, freight has moved in the opposite direction to iron ore,” he said. “Raw materials are supply constrained. Every available tonne gets shipped. It’s what mining companies can get to the ports. “It doesn’t matter if the price moves a few dollars; they ship it anyway. Hence, the reversal of the correlation between iron ore and freight.” Cutler also commented on the massive growth in China’s coastal coal trade. “China looks like its on target to grow by a hundred million tonnes in 2010,” he said. “It grew by a hundred million tonnes in 2009. It’s a vast trade. It’s also difﬁcult to get information on. It’s been a huge source of growth in recent months.” Another factor affecting capacity is delays at ports. He reckoned around 5% of the cape-sized vessels in the world were
January 2012 / World Grain / www.World-Grain.com

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World Grain - January 2012

Table of Contents for the Digital Edition of World Grain - January 2012

World Grain - January 2012
Table of Contents
from the editor-in-chief - Key found to diversification by flour millers
Calendar of Events
News review - Horizon Milling G.P. to build flour mill in Canada
News review - Cargill earnings drop 88% on commodity challenges
News review - Bayer sets up European wheat breeding center
News review - ADM acquires three grain elevators in Slovakia
News review - Ukraine exports record amount of grain in 2011-12
News review - Bunge to acquire edible oils, fats business in India
News review - CHS opens Singapore office
News review - CBH Group announces new director
News review - Olam to expand wheat milling facility in Nigeria
News review - GrainCorp 2011 net profit up 114%
News review - KCBT sets records in 2011
News review - MGEX has second best total annual volume
News review - Richardson to increase grain storage capacity at Estevan
News review - Sorenson in new role at Dakota Specialty Milling
News review - The Andersons names Reed to COO post
News review - Viterra expects strong 2012 grain handling volumes
News review - Groups urge action following MF Global bankruptcy
News review - CHS becomes sole owner of Russian JV ACG
News review - Boyd Drum, retired president of Midstate Mills, dies
News review - J.J. Hinrichsen dies
Grain Market Review - Wheat
Country Focus - China
Feature - 'Sky is the limit'
Former ConAgra Mills President tackles new challenge
Feature - Preparing for change
Canada approves act ending CWB monopoly
Feature - Russia's grain transportation challenges
Feature - Oilseeds to be bullish in 2012
Specialty grains market growing, but GMO remains a major issue
Feature - GEAPS Exchange 2012
Feature - VICTAM Asia 2012
VICTAM Asia 2012 Products Showcase
Grain Operations - Explosive issue
Feature - Shipping market trending higher
Feature - La Niña to impact grain production
Supplier News - Maxi-Lift grows Tiger-Tuff line
Supplier News - Cargotec appoints Tom Svennevig vice-president
Supplier News - LeMar achieves AISC, AWS certification
Supplier News - Seedburo celebrates 100 years
Advertiser Index
World Grain - January 2012 - World Grain - January 2012
World Grain - January 2012 - 2
World Grain - January 2012 - 3
World Grain - January 2012 - 4
World Grain - January 2012 - Table of Contents
World Grain - January 2012 - from the editor-in-chief - Key found to diversification by flour millers
World Grain - January 2012 - 7
World Grain - January 2012 - Calendar of Events
World Grain - January 2012 - 9
World Grain - January 2012 - News review - Bayer sets up European wheat breeding center
World Grain - January 2012 - 11
World Grain - January 2012 - News review - Ukraine exports record amount of grain in 2011-12
World Grain - January 2012 - News review - CHS opens Singapore office
World Grain - January 2012 - News review - Olam to expand wheat milling facility in Nigeria
World Grain - January 2012 - News review - MGEX has second best total annual volume
World Grain - January 2012 - News review - Sorenson in new role at Dakota Specialty Milling
World Grain - January 2012 - News review - Viterra expects strong 2012 grain handling volumes
World Grain - January 2012 - News review - Groups urge action following MF Global bankruptcy
World Grain - January 2012 - News review - J.J. Hinrichsen dies
World Grain - January 2012 - Grain Market Review - Wheat
World Grain - January 2012 - 21
World Grain - January 2012 - Country Focus - China
World Grain - January 2012 - 23
World Grain - January 2012 - 24
World Grain - January 2012 - 25
World Grain - January 2012 - 26
World Grain - January 2012 - 27
World Grain - January 2012 - Feature - 'Sky is the limit'
World Grain - January 2012 - 29
World Grain - January 2012 - 30
World Grain - January 2012 - 31
World Grain - January 2012 - 32
World Grain - January 2012 - Former ConAgra Mills President tackles new challenge
World Grain - January 2012 - 34
World Grain - January 2012 - 35
World Grain - January 2012 - Feature - Preparing for change
World Grain - January 2012 - 37
World Grain - January 2012 - Canada approves act ending CWB monopoly
World Grain - January 2012 - 39
World Grain - January 2012 - 40
World Grain - January 2012 - 41
World Grain - January 2012 - Feature - Russia's grain transportation challenges
World Grain - January 2012 - 43
World Grain - January 2012 - 44
World Grain - January 2012 - 45
World Grain - January 2012 - 46
World Grain - January 2012 - Feature - Oilseeds to be bullish in 2012
World Grain - January 2012 - Specialty grains market growing, but GMO remains a major issue
World Grain - January 2012 - 49
World Grain - January 2012 - 50
World Grain - January 2012 - 51
World Grain - January 2012 - Feature - GEAPS Exchange 2012
World Grain - January 2012 - 53
World Grain - January 2012 - 54
World Grain - January 2012 - 55
World Grain - January 2012 - 56
World Grain - January 2012 - 57
World Grain - January 2012 - Feature - VICTAM Asia 2012
World Grain - January 2012 - 59
World Grain - January 2012 - 60
World Grain - January 2012 - 61
World Grain - January 2012 - 62
World Grain - January 2012 - 63
World Grain - January 2012 - 64
World Grain - January 2012 - 65
World Grain - January 2012 - VICTAM Asia 2012 Products Showcase
World Grain - January 2012 - 67
World Grain - January 2012 - 68
World Grain - January 2012 - 69
World Grain - January 2012 - 70
World Grain - January 2012 - 71
World Grain - January 2012 - 72
World Grain - January 2012 - 73
World Grain - January 2012 - 74
World Grain - January 2012 - 75
World Grain - January 2012 - 76
World Grain - January 2012 - 77
World Grain - January 2012 - Grain Operations - Explosive issue
World Grain - January 2012 - 79
World Grain - January 2012 - 80
World Grain - January 2012 - 81
World Grain - January 2012 - 82
World Grain - January 2012 - 83
World Grain - January 2012 - Feature - Shipping market trending higher
World Grain - January 2012 - 85
World Grain - January 2012 - 86
World Grain - January 2012 - 87
World Grain - January 2012 - 88
World Grain - January 2012 - 89
World Grain - January 2012 - Feature - La Niña to impact grain production
World Grain - January 2012 - 91
World Grain - January 2012 - 92
World Grain - January 2012 - 93
World Grain - January 2012 - 94
World Grain - January 2012 - 95
World Grain - January 2012 - Supplier News - Seedburo celebrates 100 years
World Grain - January 2012 - 97
World Grain - January 2012 - Advertiser Index
World Grain - January 2012 - 99
World Grain - January 2012 - 100
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http://digital.world-grain.com/sosland/wg/2004_12_01
http://digital.world-grain.com/sosland/wg/2004_11_01
http://digital.world-grain.com/sosland/wg/2004_10_02
http://digital.world-grain.com/sosland/wg/2004_10_02
http://digital.world-grain.com/sosland/wg/2004_10_01
http://digital.world-grain.com/sosland/wg/2004_09_01
http://digital.world-grain.com/sosland/wg/2004_08_01
https://www.nxtbookmedia.com